Governmental Deficit Spending
Up until the Obama administration, Republican administrations have produced far greater budget deficits that Democratic Administrations. Please not the conclusion:
Up until the Obama administration, Republican administrations have produced far greater budget deficits that Democratic Administrations. Please not the conclusion:
Conclusion
A government budget deficit, along with such other fiscal tools as credit, can stimulate the economy, resulting in business activity and profitability. A deficit can help to create business and investor optimism along with more employment opportunities. But too much of a good thing can also fuel a rise of inflation. Deficit spending may also create a rise in unemployment, but lower the inflation rate. The object is to maintain a balance.